Karvel corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. For the month of august, karvel estimated total manufacturing overhead costs at $300,000 and total machine-hours at 75,000 hours. Actual results for the period were manufacturing overhead costs of $290,000 and 75,000 machine-hours. As a result, karvel would have:

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Roberto Vaughn

Business

30 January, 18:17

Karvel corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. For the month of august, karvel estimated total manufacturing overhead costs at $300,000 and total machine-hours at 75,000 hours. Actual results for the period were manufacturing overhead costs of $290,000 and 75,000 machine-hours. As a result, karvel would have:

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Kaiden Serrano · Answer 1

It is given that Karvel corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. For the month of August, karvel estimated total manufacturing overhead costs at $300,000 and total machine-hours at 75,000 hours. It means the allocated overhead cost for 75,000 hours shall be $3,00,000.

Now Actual results for the period were manufacturing overhead costs of $290,000 and 75,000 machine-hours.

As a result, karvel would have Over applied Overhad (300,000-290,000) = $10,000